REG - Cadence Minerals PLC - 4th Amapa Iron Ore Shipment Completed & En Route

Cadence MineralsAnnouncement

25/04/2022 09:00

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RNS Number : 1829J  Cadence Minerals PLC  25 April 2022

Cadence Minerals Plc

("Cadence Minerals", "Cadence" or "the Company")

 

Fourth Amapa Iron Ore Shipment Completed and En Route

 

Further to the announcement made on the 7 April 2022, Cadence Minerals
(AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that DEV Mineração S.A's
("DEV") has completed the sale and shipment of Iron Ore from the Amapa Iron
Ore Project ("Amapa Project").

 

Highlights:

·    DEV has shipped and sold the fourth batch of iron ore from the
stockpiles.

·    The loading of the 48,492 wet tonnes of iron ore sinter fines
(approx. 58% Fe) at Companhia Docas de Santana ("CDSA") was completed on the
23 April

·    Iron Ore 62% Fe, CFR China at US$150  per tonne (22/04/2022)

·    Approximately 1.2 Mt of iron ore is currently stockpiled in DEV's
wholly-owned port

 

DEV has shipped and sold the fourth batch of the iron ore from the stockpiles
at Santana, Amapa, Brazil. The loading of the 48,492 iron ore sinter fines
(approx. 58% Fe) at CDSA was completed on 23 April, and the ship departed
yesterday, 24 April. This shipment represents the first iron ore export since
Cadence vested its equity interest (27%) in the Amapa Project earlier this
year.

 

The first three shipments occurred in the first half of last year and were
approved via a court petition ("Approved Court Petition"). Details of the
Approved Court Petition can be found here
(http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=311428211518388738)
. The Approved Court Petition limited the sales of the iron ore stockpiles to
US$10 million of net profits ("Approved Court Disposal Funds").

 

The Approved Court Disposal Funds were applied per the Approved Court
Petition, with DEV retaining a portion of the net profits. These net profits
and the earnings from the current shipment will be paid to the Secured Banks
Creditors as per the settlement agreement announced on 29/12/2021.

 

Details of Ownership and Joint Venture Agreement

Cadence owns 27% of the Amapa Project, with our joint venture partner, Indo
Sino Pty Ltd ("Indo Sino"), owning the remaining 73%. The ownership of Amapa
is via a joint venture company, Pedra Branca Alliance Pte. Ltd. ("JV Co"),
which owns 100% of the equity of DEV Mineração S.A. ("DEV"). Should Indo
Sino seek further investors or an investment in the JV Co, Cadence has a first
right of refusal to increase its stake to 49%.

 

- Ends -

 

 For further information:

Cadence Minerals plc
                         +44 (0) 7879 584153
 Andrew Suckling
 Kiran Morzaria

 WH Ireland Limited (NOMAD & Broker)                                      +44 (0) 207 220
                      1666
 James Joyce
 Darshan Patel

 Novum Securities Limited (Joint Broker)                                  +44 (0) 207 399
                      9400
 Jon Belliss

 

 

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information
contained in this announcement. Kiran holds a Bachelor of Engineering
(Industrial Geology) from the Camborne School of Mines and an MBA (Finance)
from CASS Business School.

 

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be
forward-looking statements. Forward-looking statements are identified by
their use of terms and phrases such as ''believe'' ''could'' "should"
''envisage'' ''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative
of those variations or comparable expressions including references to
assumptions. These forward-looking statements are not based on historical
facts but rather on the Directors' current expectations and assumptions
regarding the Company's future growth results of operations performance future
capital and other expenditures (including the amount. nature and sources of
funding thereof) competitive advantages business prospects and opportunities.
Such forward-looking statements reflect the Directors' current beliefs and
assumptions and are based on information currently available to the
Directors.  Many factors could cause actual results to differ materially from
the results discussed in the forward-looking statements including risks
associated with vulnerability to general economic and business conditions
competition environmental and other regulatory changes actions by governmental
authorities the availability of capital markets reliance on key personnel
uninsured and underinsured losses and other factors many of which are beyond
the control of the Company. Although any forward-looking statements contained
in this announcement are based upon what the Directors believe to be
reasonable assumptions. The Company cannot assure investors that actual
results will be consistent with such forward-looking statements.

 

The information contained within this announcement is deemed by the Company to
constitute inside information under the Market Abuse Regulation (EU) No.
596/2014

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